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Intellectual property theft is a frequent accusation the Trump Administration has thrown at China in the ongoing trade spat. But as CGTN's Xu Xinchen has found, Chinese manufacturers have played a key role in helping international companies protect their rights.
The iconic kidney-shaped grills, vibrant colors of your choice, plus the logo synonymous with German engineering. BMW enjoys a huge following in China. Yet, for better utilization of its resources, parts of the car's exterior are being made by a Chinese partner.
CAO KEBO, OWNER SHENYANG MINGHUA MOULD & PLASTICS TECHNOLOGY "Exterior parts we manufacture for BMW include front and rear bumpers for its 5 and 3 series."
BMW established its local joint venture with Chinese car maker Brilliance 15 years ago. Now BMW-Brilliance's plants in the northeastern Chinese city of Shenyang, produce the most vehicles globally -- surpassing the car maker's plants in Spartanburg, South Carolina, and in Dingolfing, Germany. That also means huge business growth for bumper maker Shenyang Minghua. The firm grew 25-fold during the past decade. And its partnership with BMW is strengthening as well.
XU XINCHEN CGTN REPORTER "Since 2012, your firm has helped BMW design some of its exterior parts for the Chinese market, But who owns the designs?"
CAO KEBO, OWNER SHENYANG MINGHUA MOULD & PLASTICS TECHNOLOGY "BMW still owns the designs for the styling but we own the intellectual property rights for the technology used in the production. We are collaborating with BMW to develop products based on its style, high standards and market needs."
Cao says communication is key to making sure his firm and BMW are on the same page. He says Chinese firms are becoming increasingly aware of international rules. Shenyang Minghua is just one of BMW's 350-plus suppliers in China. The automaker routinely checks its suppliers to make sure they follow international guidelines including respect for IP rights. Otherwise they won't survive.
BENEDIKT HARTMANN VP FOR PURCHASING AND QUALITY MANAGEMENT BMW-BRILLIANCE AUTOMOTIVE "My understanding is that all of our suppliers respect IP rights. If they would not, we would end the business relationship."
BMW also says that localization is a key strategy for the firm, which could also help ease impacts from the ongoing trade spats between the world's two largest auto markets. And BMW is also helping its quality Chinese partners to go global. For Minghua, its American factory next to BMW's Spartanburg plant started rolling out parts for the German luxury car earlier this month. Xu Xinchen, CGTN, Shenyang, Liaoning Province.